A drought in China has affected 104 million mu (7 million
hectares) of farm land as of May 29, the People’s Daily reported
today, citing data from the Office of State Flood Control and
Drought Relief Headquarters.

China’s property tax may be expanded nationwide after
revising a trial program imposed on the cities of Chongqing and
Shanghai, Xinhua News Agency reported yesterday, citing
Chongqing Mayor Huang Qifan. Construction of large homes fell,
and luxury home sales and prices declined after Chongqing
started the trial on Jan. 28, Xinhua cited Huang as saying.

China Shenhua Energy Co. (601088 CH), the listed unit of
China’s biggest coal producer, gained 1.7 percent to 27.83 yuan,
the biggest increase since May 17. The company said its board of
directors approved plans to buy back as much as 10 percent of A
shares and 10 percent of H shares depending on market
conditions.

China State Construction Engineering Corp. (601668 CH), the
nation’s largest heavy construction company by market value,
increased 1.1 percent to 3.73 yuan, the biggest rise since May
13. The company won 10 contracts worth a total of 20.9 billion
yuan, according to a statement to the Shanghai Stock Exchange.